Badin District, and to Adverse Impacts to Fisheries and Wetland Habitats, Known As “Dhands”

40280 PAKISTAN NATIONAL DRAINAGE PROGRAM PROJECT (CREDIT NO. 2999-PK) Public Disclosure Authorized Follow Up to the Meeting of the Executive Directors of the World Bank (October 31, 2006) on the Inspection Panel Investigation Report No. 36382-PK and Management Report and Recommendation Public Disclosure Authorized PROGRESS REPORT ON IMPLEMENTATION OF THE ACTION PLAN Public Disclosure Authorized July 5, 2007 Public Disclosure Authorized Contents Introduction ..................................................................................................................................... 1 Summary of Progress on Implementation of The Action Plan....................................................... 2 Progress on Immediate and Short Term Actions............................................................................. 3 Progress on Medium Term Actions............................................................................................... 10 Long-Term Outcomes ................................................................................................................... 11 Annexes Annex 1. Pakistan Poverty Alleviation Fund’s (PPAF) Sindh Coastal Areas Development Program (SCAD) Annex 2. Note by the Consultative Group to Assist the Poorest (CGAP), World Bank and PPAF: “Graduating the Poorest: Linking Safety Nets with Microfinance” Annex 3. Report by FAO Consultant: Assessment of Badin and Mirpurkhas Districts, Flood Management Plan Annex 4:. Report by FAO Consultant: Assessment of Present Condition of LBOD and Kadhan Pateji Outfall Drain (KPOD) Tables Table 1. SCAD Projects by Partner Organization and Districts Table 2. Action Plan Box Box 1. SCAD Implementation in Keti Bunder Figure Figure 1. Left Bank of Indus River in Southern Sindh Acronyms AKPBS Aga Khan Planning and Building NGO Nongovernmental organization Service NWFP North West Frontier Province AWB Area Water Board PO Partner Organization CGAP Consultative Group to Assist the PPAF Pakistan Poverty Alleviation Fund Poorest SAFWCO Sindh Agricultural and Forestry DPOD Dhoro Puran Outfall Drain Workers Coordinating Organization FAO United Nations Food and SCAD Sindh Coastal Areas Development Agriculture Organization Program FAO-TCP FAO Technical Cooperation SCAN Sindh Coastal Areas Network Program SIDA Sindh Irrigation and Drainage FO Farmers’ Organizations Authority GoP Government of Pakistan WAPDA Water and Power Development GoS Government of Sindh Authority KPOD Kadhan Pateji Outfall Drain WB World Bank LBOD Left Bank Outfall Drain WSIP Sindh Water Sector Improvement NDP Pakistan National Drainage Project Program ii PAKISTAN NATIONAL DRAINAGE PROGRAM PROJECT (Credit No. 2999-PK) MANAGEMENT REPORT ON STATUS OF IMPLEMENTATION OF THE ACTION PLAN FOLLOWING THE INSPECTION PANEL INVESTIGATION REPORT (No. 36382-PK) AND MANAGEMENT REPORT AND RECOMMENDATION (INSP/R2004-0007/4&5) Introduction 1. On October 31, 2006, the Executive Directors discussed the findings of the Inspection Panel’s Investigation Report and the Management Report and Recommendation on the Pakistan National Drainage Project (NDP, closed in December, 2004). 2. The Panel found that the design of an earlier project, the Left Bank Outfall Drain (LBOD, closed in December 1997), whose ongoing contracts were funded and completed under the NDP for about 3.3 percent of LBOD’s total cost), underestimated prevailing conditions and the risk of extreme meteorological events. This contributed to the breakdown of the outfall system, suffering of local people in the lower Badin district, and to adverse impacts to fisheries and wetland habitats, known as “dhands”. The Panel also found instances of non-compliance with Bank operational policies. 3. The Management Report stated that while the LBOD and NDP projects did create opportunities for poor people by expanding agriculture substantially, all involved in the projects could have done a better job of mitigating the risks and impact of natural disasters on the poor within and outside the project areas. 4. After the closing of the NDP,1 Management has continued to work with the GoP and GoS to address the reform agenda initiated under the project, as well as to address the drainage and outfall challenges arising from the LBOD. An Action Plan prepared for this purpose identifies suitable strategies and instruments to progress on the reform agenda and to support the poorest people of the lower Badin and Thatta districts. The plan includes a poverty alleviation fund, a flood response plan, and a new lending in the water sector approved by the Executive Directors. 5. At the Board’s request, this report provides an update on progress made in the implementation of the Action Plan before the 2007 monsoon season. It describes the activities and projects initiated for the short term, as well as those being developed for the medium and longer term. The summary of the Action Plan is provided in Table 2. Four annexes are attached. These materials have also been posted on www.worldbank.org.pk. 1 The Implementation Completion and Results report was sent to the Executive Directors in May 2007. Bank Management has committed to report back to the Board again in November 2007 on the implementation of the Action Plan. Summary of Progress on Implementation of The Action Plan 6. Local communities and civil society organizations in Thatta district were visited in April 2007 by senior Bank Management. Overall, the GoP and GoS have been diligent in implementing the follow up actions approved by the Executive Directors as part of the agreed Action Plan. This report highlights the major results of the first eight months of the implementation of the Action Plan: • Significant progress has been made to address the harsh conditions of the population living in the area. Direct actions to alleviate poverty are in place through an inclusive consultation process with the communities. The Pakistan Poverty Alleviation Fund (PPAF) agreed to intervene in the area in June 2006. Since then, ten nongovernmental organizations (NGOs) have engaged in efforts to improve the living conditions of the transient fisherfolk communities. This has resulted in 290 community projects prepared, approved, and being implemented with a commitment of about US$2.8 million. The PPAF is proving to be the right instrument to address extreme poverty in the communities outside the irrigation network given its targeting effectiveness and its partnership with capable NGOs. The mobilization capacity of the PPAF contributed significantly to the emergency relief efforts following the earthquake of October 2005 in NWFP and Jammu & Kashmir. • A rapid assessment of ecological and livelihood conditions of the “dhands” in the vicinity of the outfall system has progressed less than expected. The consultation process on the terms of reference for the study with the Government and partners active in the area, the identification of a source of financing, and the appointment of qualified consultants took longer than planned. The assessment is now under way, and the first phase results will be available in September, 2007. • Progress has been made in assessing and improving local government flood management systems. The assessment was carried in April/May, 2007 and discussed with the Government. Also, the district government of Badin, with the help of the Bank, has developed a “Contingency Plan to Combat Cyclones and Floods” for 2007. A similar plan is under preparation for the Mirpurkhas district. While the preparation of these plans represents an important initiative in addressing flood risks and vulnerability, capacity building at the local level will remain a long term issue, and the Bank will continue to assist the Government in supporting this action over the medium to long term. • Progress has been made in carrying out an assessment of the functionality of the outfall system as well as in implementing the most urgent repairs. The assessment was carried out in April/May, 2007 and discussed with the Government. Increased efforts to repair the damages to the irrigation and drainage infrastructure that occurred during the floods of 2003 and 2006 have been made over the last couple 2 of years by the GoS with a commitment of US$12.6 million, of which US$2.5 million were spent in the last year. While the risk of floods has been reduced by enlarging the flow capacity of the outfall drains, the GoS has yet to put in place a detailed maintenance program for the drainage network. The maintenance program is expected to be effective by November 2007 and will be supported under the Water Sector Improvement Project (WSIP). Detailed plans to improve the functioning of the complex drainage infrastructure have also been initiated and will be supported under the WSIP. • Appraisal and negotiations of the Sindh WSIP have been completed in March, 2007 and Board presentation is expected in September, 2007. The delays experienced between negotiations and Board presentation stem from the required clearances of the negotiated documents from the GoS and the GoP. This process has not finalized yet, and approval from Federal authorities is expected during their next meeting in August. Major lessons learned during the last ten years of the Bank’s involvement in the water sector have been incorporated into project design. 7. Management believes that while immediate actions have been taken to address the main issues affecting the area as a consequence of the floods of 2003 and 2006, flood risks in the coastal zone of the Indus river system will continue to be

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